The risk fund for agricultural sectors which do not have access to insurance should be composed this year, said Latvian Minister of Agriculture Armands Krauze in an interview to TV3 programme 900 seconds.
The minister said this fund should be made this year, but the agreement needs to be reached by agricultural organisations.
“We have to preserve insurance and support. In addition to that, this risk fund should be formed for the sectors that do not have access to insurance,” said Krauze.
He added that the risk fund will need to be mandatory, because voluntarily this system would not work, which is proven by previous experience.
“Voluntarily it will not work. We have to agree on contributions and the principles by which this fund will be organised and managed,” said Krauze, adding that there are countries in Europe in which farmers managed such funds on their own.
At the moment farmers in Latvia can use insurance to protect against summer and winter risks – frost, storm, hail, rain, veld, wild beast and also against the risk of drought. The types of crops that can be insured include rapeseed, wheat, rye, barley, triticale, oats, beans, peas, buckwheat, corn, potatoes.
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Minister: risk fund should be mandatory because this system would not function voluntarily
